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Suppose I have a $100 bill that I choose to auction off to the highest bidder. Never mind how silly this sounds. ' Suppose I

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Suppose I have a $100 bill that I choose to auction off to the highest bidder. Never mind how silly this sounds. ' Suppose I tell everyone that whoever bids the highest gets the $100 bill but there is one small catch. The person who bid the second-highest still has to pay their bid but they don't get the $100 bill. Under these circumstances, please explain carefully why it might make sense to bid more than $100 for the $100 bill? In other words, why might this be rational behavior? ._

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